THE CHINA MAIL,
MONDAY, JULY 1, 1957.
TRADE and COMMERCE SECTION
US ECONOMY ON HIGH PLATEAU WORLD'S PEOPLE ON Indications That 1957 INDIAN COTTON FUTURES
Will Be Among 'Best Years Ever?
By JOHN MORKA
New York, June 30. The US economy approached mid-year on a high plateau with indications that 1957 will be counted among the "best
yoars over.'
爷爷
Despite some soft spots-notably in appliance and auto sales, -most housing construction, farm machinery and steel production businessmen now think that the second half will be as good as the first half.
Business, it is felt, has not been as bad as had been anticipated by the pessimists last November. Nor has it been as good as the optimists forecast in January.
Total
sales are at an annual, might hit about 6,000,000 units, peak of over 7 billion, Capital the average of the past six years, outlays are being revised "up-} word.
Overall
that
Riesi-expectations are employment continues strong, although there July operations might drop to 70 with a PT cent from current levels of is some disappintment
By drop of over 500,000 in manu- 5.2 per cent of capacity, facturing employment and a September, however, the need minor shortening of the work for replenishing low inventories Government spending is mainly from the auto industry week. at an accelerated rate, Perconal will menn a lot of new orders income continues
in August, helped in part by further demand from construe- levels.
tion, oil and gas, shipbuilding and freight cars, all blg users cf steel,
at
No. 1 Problem
record
|
The
SILVER EASY
CONTINUE TO RISE OVER WEEK
By WILLIAM T. PLUNKETT
New York, June 30. Cotton futures ended the week on higher ground for the fourth time in a row.
Bombay, June 29, After a moderate rally early in the week uided June 28, aided by better upcountry advices, the sliver Profit-taking and some hedge selling shaved market developed renewed extreme gains, but at Friday's close the list ruled casiness under pressure or 20 to 63 points 1 to 3.16 a bale-higher than the liquidation, prompted by disappointing-advices and preceding week. . reports of an influx of
Tibetan coins.
Tho simpe price-bolstering inflences, at play for some time, continued in keeping
Stocks of silver at the end of aging to consonans US COTTON
the week were 000 bars. Oft. In successive sessions, take was 18 bars daily.
The cited bullish factors in- cluded:
government loan rate on the new crop;
Gold prices moved narrowly In generally duil trading, but Ота plant and equipment. seasonably adjusted rate, spend towards the end of the period Anticipation of a higher
noticeable ing in the first quarter of 1959 the nurket showed n was at on annual rate of 32.82 improvement, largely influenced billions. In the first quarter of by the reported confiscation of this year, It was at a rate ofan legal supply. 30.89 billions and in the second quarter at 37.33 billions. The third quarter rate is expected to rise to 37.60 billions.
Heavy Spending
The prospect of heavy sperid-
The spot metal, however, was depressed throughout the week. reflecting seasonal slackness in
demand.
2 Puable Extension of the soil bank programme into 1858
3. The unnally late crop start with the attendant chance of a substantial cut producticat;
at
1 milionary impitca- tions to the wage-steel price spiral:
Stocks were 25,000 tolas. O ing by Industry, along with take and arrivals balanced
tolas, Chihn Mail heavy spending by government, 4,000 municipalities and state agencies, Special. is likewise expected to give the strong support over the next few months which will pull up some of the lack else where,
сколоту
Business confidence is not con-
fined to 1957 however. Fortune Magazine for example, predicts that in 1958 the Federal Reserve Board lixdex of industrial pro- duction will rise more than 8 per cent de renen 150, compared with a 2 per cent rise in 1957. The cross national products, it forecasts, will rise from 412
The No. 1 problem facing the
The major push from autos is United States today, necording expected sometime in August, big news in steel is the 10 experts, is the rising wage- price spiral and Inflation. hike of 80 per ton by US Steel. Living costs for example, edged Labour costs are due for a 20- higher
for the ninth stright-per-hour hike as of July 1, A hike in the base price of $8 month during May. Money continues tight, with interest per ton, assuming shipments rates at their highest in 25 years, hold at the 1966 levels of about
Such major weaknesses that are worrisome appear to have been offset in part at least by some strong features-in-the economy ~; For one thing, the profit squeeze evident in the first quarter ap- pears to have abated somewhat, appilances, homes, school and billon in 1858 to 421 this year
aggregate gain of heavy construction, among thou so that the companies is somewhere around sands of others. In the pasŤ, three per cent, after allowances the trend in the industry has for excessive gains in petroleum been to pass on at least the due to the Buez crisis, sirikes major part of the hour costs. and other major production dis- ruptions
Machine tool shipments are ht
A three-year high, and there
arc
13 million tons, will add more than 500 million to steel costs. This will add new impetus ta the inflationary spiral. It is also expected that the strel hikę will in the long run mean higher prices for such items as autos,
Overpriced
Cost of money-with
Invest-
even indications that the ment demand outruning avall downtrend in autos, housing op-able Amds, interest rates spurted pliances and steel may have to new 'highs
first higher. Long-term been attested. There are indi-half cullons also that inventories government bonds hit new lows,
Catching Up
GOLD BAR 5. Unuous cautiother on
MARKET FIRMED
After
Zurich, June 29.
a slightly easier
the part of sellers in face or the combined bullish poteile tals.
The spot July delivery, after agging most of the time, de- veloped armes at the week- end on covering operations in the absence of delivery notices The open position in the spot month was timated around 35,000 bales at the week-end,
OVERCOME
and to 433 next year-in terma of constant 1956 prices, As in-trend early in the week, to flation continues, the GNP in June 27, reäecting a fall actual dollars will reach 460 in activity, the gold bar at an inflationary male market firmed again on billion rise of more than 1 per cent à
Crop experta stressed the neca quarter.-United Press.
increased demand, parti-for a reasonable Beriod or clear cularly from the Middle and warm weather to overcome initial lateness, caused by › ex- East.
denve moisture
cool anet" weather. The persistent rains, Trading with the Far East and it was feared, also will give the South America white the absence of margin re-ing world multipileation and
modest boll weevil a head start, facilita stricted dealings between Lon-restricting effectiveness of dōri, Switzerlarid and Paris,
poledning.
NEW YORK RAW COTTON EXPORTS
Raw
New York, June 30, cotton exports hy
Dediatri
Continent
Orient
Canada Total for ODSKI Same period last year exchading Haters
3,361,031 2,447,200 400,103
,201,710 2,030,142
United Press.
was
dominated.
Sovereigns were affected by
German Hiquidation, but some colps were higher on renewed buying, which found offerings scarce, China Mall Special
is used, statisticians Ogured the
GOODS MARKET
THE MARCH TO
A GOLDEN AGE
Bank Of America · Officiäls
San Francisco, June 30. The people of the world "are on the march" to a golden age, a symposium öf leading officials of the Bank of America said today.
تم
The economy of the world looks "rosy and bright," there are "signs of new life" everywhere they declared in reporting on the world's economic
situation.
The panel of £ive executives of the Bank told a news con- ference that the pains of the recond World War were пуст that optimism was the order af the day,
The five men, Russel G. Smith, an
executive Vice- President, Roland Pierotti, As- sistant to the president, David COOTER L. Grove, economist, Curran, Vice-President, and Frie Hallbeck, Vice-President, had just returned almost almul- taneously from 'a globe-trotting tour.
ENTHUSIASM
Now York, June 30, Worth Street sellers of cotton preÿ goods reported | another week of less-than- routine activity. With cathusiasm over many weaving, dyeing and market and finishing plants shutdown general
of
LONDON
STOCK MARKET
REVIEW
Lohdöt, Jaké 30. and In Europe,' said Smith
Odd thing about this Pierit, there is a wave'
4hb common past wöök hai Boer the the economy In widely quoted opinion that They pointed to the if the government does for vacations, activity was fact that more Europeans now
about limited mainly to small own card and that the standard sondething drastic
of living was on the rise. Hol-the threat of lưng chñcéty lots of goods wanted for land was sold to have high tobacco shares will be- quick delivery on fill-in re- level" of economy and in Not come as risky aš góvérű-- quirements.
Brokers thought the', current pause might continue for an- other week or more, or until vacations are ovde,
WAS
not
PICK-UP Heavyweight Industrial fabrics made the relatively best show- ing. Businuse there.
show a try, but it did "modest pick-up," "allon Ad mitted Curtailment has helped some producers to cut back on stocks Meanwhile, one leading automoblie maker placed sub- stantial commitments involving wide trilly, sateens, drills and shootings.
why and Sweden there were "booms,"
mont bands, Germany was described A probably the strongest national. Elderly investors who have economically, on the
Imperial continent always regarded and as the best customer of other Tobacco as safe, turned to War European nations. Smith placed Loan or even Consols, ind them credit for Germany's recovery at the close of the weeks selling after the war to hard work at levels yielding about 10%
per tent; it is true that the and good management,"
Both Smith and Flerotti had selling which reduceà thêm this just concluded an extensive tour week by 1/0d to thet 1957 tow of through Maly, France and Eng- | 36/6d. had a professional Iand and Hallbeck had returned comment in it with mess that central Europe and prices will recover somewhat from
when the "short sales" are duly Scandinavis.
enthusiasm for the European shock to the world of conservr
All spoke of the tremendous covered, but it all constitutes a common market, the inde agree-tve investment,
Belgium, thent
the Netherlands, France, Germany, Italy and fixembourg. They said Other miscellaneous.
felt this buyers that most Europeans prices part to be partially the answer checked the market on
DISSOLVED and deliveries, giving the first to problems of the future, feeling of rear encouragement Experienced aineo the substan- rint, but short-lived end-April buying splurge,
brokin
LOWEST
botword
SOARED
Another clue to the world we live in may be derived from the shares of John Barker, the old Urapers andneral firm of furnishers" in Kensington; they have
and to other
This device has been used cessfully in several other ches, but it always Causes it were "un-English"
powerful blow to Communion, They said Europe has Been has led to a great "disillusion- literally soared 28/- this which have been quidated at as investors channel their funds a rate of about 1 billion a year, to higher yielding corporate
Print cloth sellers noted that ment among Europeans in the past week to a peak of 103 may set the baso for an stocks.
For the first time in 20 destination as reported in bales The gold coins market was
while actual buying was slow, Communist cause. The economie shillings. The belief is that an economie uplift later this year, years, high grade bonds are by the New York Cotton Exquiet, reflecting reduced busi-held unchanged at 37.00 cents a for the third, fourth and
The mid-June parity price the activity on price-cheeding prosperity, Smith suggested, had outalde group is buying control carrying peralbly Into 1958. giving a
Brst disolved any fear of World War of the firm with the intention beller relum than change for the 1956-57 Season ness in Paris, Small losses pre pound. The loan rate. jor the periods suggested consumers ure.
of converting into come of the In 1938 goods were being ec- cominion stocks.
to June 25 were as follows:
1057-58 crop will be determined in a good-open-to-buy position. Spain also had showed con-company's hidden reserves and cumulated si a zate of about 4: Wall Sirecters pre not
hnally on the basis of the mit Some optimists believed a majorsiderable improvement over the thereafter making a handsome billion a year, so that the worried about this, howṛVET,
July parity.
buying movement could get past four years. But he said the dividend distribution to them- recent liquidation Indicates a pointing out that this has hap
on scives under way when mills get back improvements lay mostly
share- shift in polley.
pened many tinies in the past.
Meanwhile, conjecture con- to normal operations in
The diaclace, mid-the
physical | holders. The situation bears watching,
tinued as to what parity basis | July.
coditioris of living had in- they insist, cautioning that the
would be used. If the current
proved, be said, but "What is market may be overgiriced.
provisional rate of 17 per cent ji
only a surface improvement.* They continue, meanwhile, to
Tite increase in wages has driven This quidation, according to stress the markets' selectivity, some observers, is not an adjust about 40 per cent of recent buy- to sales, since sales arog has involved ell stocks, for strong. On the contrary, it long and short-term speculation. aleates that supply appears to be Indicative of the high cost of cotching up With derhand, borrowing were two develop- which to the experts, is a signments this past week.
health, excessive of economic shortage, it is reasoned, have The Puget Sound Power and been adding to upward trend of Light Company on Tuesday pald prices.
its highest price in 20 years, on an offering of its 30-year first Here's how the US economy mortgage bonda On shapes up at the half-year mark: million Issue It,had to pay B.14
Autoestimated stocks of cars as of July I now placed at per cent. Many companies have had to postpone their offerings around 775,000 units, consider- ably under the 702,000 level à
ment
20
because of skyrocketing interest charges. The US Treasury last
SMALL NET
་་༣
GAIN
DURING WEEK ON WALL STREET
BY ELMER WALZER.
New York, June 30.
loan rate for middling Inth One of the clled reacctis for prices up and brought about an certain discomfiture ds though
13 optimism
inflation trend.
Apart from these oddities the
would be around 32,04 cents a
If 82 per cent la scended the season with stocks of that converters pound.
In the Far East, the picture the lours would be around 33.89 Anlahat goods at the luwest George Curran, Wille in Japan market has had a quilot week
was bright too, according to Dimte And 84.03 cents a pound if an 4 per cent of parity is und, But no event could a loap of less than 31,45 cents become effective.United Press.
The Bank Of England
Statement
consumer
level in many years past.
ho visited the Minister of Fin-] with industrial shares' trying to Sales of finished goods have ance, Governor of the Bank of "level cut" on the theory that been picking up in gratifying Japan and other bankers on his they have, now fallen enough, -- fashion over the past few weeks, extensive tour.
Gains and losses have been reported Winizm J. Erwin, Lia verdict, however, was
unexciting, a matter of Bd or President of the big Virgina} more cautious than that of
his shilling.
Imperial Chemicals, located Dan River mills, Stress colleagues. He said that at the with a big future, befőzé it, rose ing the indications of lovr level present time Japan was experi-on
inventories, Erwin encing a drain
on its reserves only 9. und Unllcres and Woolworth only athing. said "the things that usual and that it would probably coa-while the shares, bursting with ly precede a good market. seem tinue for about six months more. an atomic-power, furo, like to be happening now.”*
However, it will level off then; Associated Electric and C. AL year previous, Sales are about week sold its 204-day antici- Stocks closed the past week on a small net
he predicted, and a surplus will Parsons, fell a shiling equal to production in recent
Vacation considerations also begin to appear. He expected watu but of balatice for the anal interest rate of 3.986 per gain for the five sessions, down moderately from
London, June 30, hampered operations in the yarn importe to exceed exports and six-month period, dealers are cont, when the Treasury sold is the May close and above the levels of a year ago.
ORTOTE The Bank of England state-market. A few fl-in experiencing new pressures in 91-day bills at 3,404 per cent.
He attested that Japan's credit moving stocks and finding
Industrials on Monday fell below the 500-level mant for the week ended June were placed in order to have the commomy begin to rise.
yarn on hard When it was good and that there have
Were erratic. Royal Oil not been any instances of post- for the first time since May 9, and then came back20, reads as follows: slightly above that level.
ponements in meeting payments. Dutch gained 5/ but the other
LITTLE TENSIÓN.
leaders were all down a shilling or so with British Petroleum Asked if he thought tension down nearly 4 shillings.
and
Governmentă
trouble keeping their margins. Production estimates, for the
year have bech scaled down to
patory bills at an overage
Political Issue
1
Matos In pirculation Public, deposit
Governement pecurities
Katie
5.0 million from about, 8,5 nad The question of inflation, tigtit 0.2 million forecast In January.money, and interest rates ins Mensured in dollars the market, Railroad issues outperformed Private deporta become a major politieni, mud roze 953 million during the other groups and the utilities Our securities the arcond half of 1957 will in US polilles, President Block werk, fest 204 million during the made the poorest showing, probably be charaterised by hower Inst
balled the bhth of June and were up 3
NARROW AREA shutdowtie and production cute upward size of prices" "aleri Bilion for the first half of 1987. backs, with prospects that the ing" He called-do he has done summer months might be die many times in the past-for Trading slipped off with the Automobile tvcks continued appointing Output in July and industry and labour to use dis-Friday ression this smallest sinet to hold in a narrow area despite August will probably have idretion in Breding wage-price Apr 1 at 1,770,000 shirës.
be scaled down by about 75,000 boosts to curb inflation.
100,000 units in July and
to
Sterling.
sume,
1,085,407,600 in hard Abres burlap prices "127(1642 | cased a Hule în face of á 23/0614 gradual slowdown in the do- 240,203,418
21,804,720 mand, from bag cutlers and in- 37317ustrial
United Press.
ERRATIC
users. Hope makers between the Red Chinese 7 buying steadied hemp prices the free people of Orient were British
Staal handlers reported moderaty them to the build up of the drift tower with the roadway economies of the Far East, nationalisation stock down 10/- ate sales for July shipment,
Curran wild he felt there was War Eran down 1/3d,' and Q6 Haw wool featured firmness in very little tensione" over most Condols down 5/-
Ferobi bondle were moni
Metals continued to feet the The Bank Of France are markete; although Aux of the blent and called hold
in-
Discussions of the monetary fluence of a lack of demand for
August if the industry hopes to Metinwhile Secretary George system before the Senate Fin-many Items despite recent price go into new model production in M. Humphrey told a Senate once Committee brought the cuts October with an Inventory Finance, Committee that the in- money factor to the fore. hot more than 300,000 care, as inflationary spiral showed signs of Cutbacks will be even recoding. At the same time, a
lis enjoyba
1950. sharper in September. Anjoint
congressional -
gub-
DEFENCE CUTBACKS
Sleds00 HELY
rathee at
helped by a Friday rally,
Statement
Paris, Juita 30. fris Baile of France, staté
/estimated 3.4 mfillon units will commitice in a report last week The market also suffered from Of the 1,988 Pine traded, Inăt ment for the wook ended. Junke
have been turned out in first urged the Government to con- the Lotion talks on dianna week, 370 advanced, 627. do 20 reads as follows: hale. 1057,
Unue its tight money policy ant ment which some gold could now law were set by 244 Imues clined, and 189 held unchanged: sult in defence oulbecks. But on Production meanwhlio is murd to resist any tax cuts.
the whole it here..felt that the end new highs by 50%;
3.
ning of beitte than the 1950 pact This appears to rule out my list, benkrod well and several an The Dow been sciukna í 186 sirico come industry leaders, 1641 | prospect that tho Federal market experts believed it would week neftu kindlustasida ma pod 20 that many sales were lost in the Reserve Board will are the more another attack on the ze uit elk 11040, 297180 qurtarımi moontha.. lat year; be crédit strings at this time, for card higne mer on Aphi 0, 1950. kulut
during tho marions. It produis
tion arow at 165,000 monthlyum requirin
condionica; ma tha euxrund) (DRDO VEDANTA Lủa OYE BÖYR DRIKS. Rix, enoethe, output
fakira continued, very salon-
development to the sive:
Tower
trálfars prices were mixed, a "tempest in a teapot” from ăn amohanged, Gerrard, with good grade firky 'and lower economie point of view. bortu denfor. Domicilio pricos held He said that what tension changed were firm even though deensand was existed thère and in Formoen Young Loan non-s
Chimed locking-Unités Press.
would isod adversely affect the T oconosile reperity of the world fractionally w
Mr. Dule tr as a whole.
with China, At this point Smki wa BIKE- od it the Bank of Amerion Fully padentede Were anvourable towarterontods came, trade with bith several or Hệả Chini.
** NAMESAKES
· Anawers ----1, Tyres, -
10 17
Gia Malcolm Campbell,
Deinitely not, he replied.
* "How can we trade with us:
#
Dellerslöcke
But ther
country branded as an aggres- perdance with
Matt (declinei mponfare 2 gereed | eddielon; allo that there were dark spota anhum
bright 1⁄2 picture. In the overall Trasa Klarinod, from Linesiny